Is it a good idea to invest £1500/month solely into S&P 500 over the long term?

Asked 4 years ago

My investment plan spans 10 - 15 years. What would the risk level of me doing something like this be? Should I be diversifying more?

Andrew Moran

Wednesday, June 09, 2021

While the S&P 500 is the gold standard of indexes, investing solely in investment vehicles that mirror the composition and performance of the fund may be too risky.

The reason is that the S&P 500 it has become too tech-heavy. The problem? Many financial experts think tech is in a dot-com bubble 2.0.

Here is perhaps a sound strategy to adopt:

Vanguard 500 Index Fund ETF

  • 06/09: $388.72
  • YTD Return: +13.25%
  • Yield: 1.40%

Vanguard High Dividend Yield Index Fund ETF

  • 06/09: $107.40
  • YTD Return: +18.35%
  • Yield: 2.82%

If you really want to invest in the S&P 500, you could always do a 75/25 split.





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